The airline said it would hold off on forecasting full-year performance due to weaker travel demand and uncertainty around global trade.
Delta Air Lines announced on April 9 that it is withdrawing its financial forecast for 2025 and will reduce its planned capacity growth for the second half of the year, citing weaker demand and mounting economic instability.
“Given current uncertainty, Delta is not reaffirming full-year 2025 financial guidance and will provide an update later in the year as visibility improves,” the company said in its quarterly earnings statement.
The decision reflects a significant shift for the airline, which had previously projected strong earnings and cash flow for the year. Delta executives said changing conditions have prompted the company to pull back.
“Based on current trends, we expect June quarter total revenue to be down 2 percent to up 2 percent over prior year, with continued resilience in premium, loyalty and international partially offsetting Domestic and main cabin softness,” Delta President Glen Hauenstein said in a statement.
“2025 is playing out differently than we expected at the start of the year. As a result, we are adapting to current conditions while staying true to our long-term strategy.”
Delta CEO Ed Bastian pointed to stalled global trade and cautious business and consumer spending as key reasons for the adjustment.
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“While the first quarter unfolded differently than initially expected, we delivered solid profitability that was flat to prior year and is expected to lead the industry,” Bastian said.
“I would like to thank our people for their outstanding performance and hard work during the quarter. With broad economic uncertainty around global trade, growth has largely stalled. In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control. This includes reducing planned capacity growth in the second half of the year to flat over last year while actively managing costs and capital expenditures.”
Delta reported steady results for the first quarter and said it expects to remain profitable in the months ahead. The airline continues to see strength in international travel and premium services, even as domestic and corporate bookings have softened.
Despite holding off on a full-year forecast, Delta said it is positioned to navigate the uncertain environment, helped in part by recent cost efficiencies and lower fuel prices.
Delta shares slipped following the announcement. The company’s stock has been under pressure this year, reflecting broader investor concerns about a slowing economy and the impact of global trade tensions.
“Given our position of strength, our bias toward action and the decline in fuel prices, Delta remains well positioned to deliver solid profitability and free cash flow for the year,” Bastian said.
“I expect that our financial results will continue to lead the industry and validate our strategy to create differentiation and greater financial durability.”
The Associated Press contributed to this report
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